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The bases to be used in allocating expenses, together with other information, are as follows: advertising expense-incurred at headquarters, allocated to divisions on the basis
The bases to be used in allocating expenses, together with other information, are as follows: advertising expense-incurred at headquarters, allocated to divisions on the basis of usage: Winter Sports Division, $433,000; Summer Sports Division, $489,000. o. Transportation expense-allocated to divisions at a rate of $17 per bill of lading: Winter Sports Division, 15,000 bills of lading; Summer Sports Division, 16,500 bills of lading. Prepare a divisional income statement with two column headings: Winter Sports Division and Summer Sports Division. Do not round your interim calculations. Prepare a divisional income statement with two column headings: Winter Sports Division and Summer Sports Division. Do not round your interim calculations. Championship Sports Inc. Divisional Income Statements For the Year Ended December 31, 20Y9 Sales Cost of goods sold Gross profit Divisional selling and administrative expenses: Divisional selling expenses Divisional administrative expenses Operat divisional selling and administrative expenses Support department allocations: Advertising expense Transportation expense Accounts receivable collection expense Warehouse expense Total support department allocations department allocations Provide supporting schedules for determining support department allocations. If required, round per unit amounts to two decimal places and final answers to the nearest dollar. Championship Sports Inc. Support Department Allocations For the Year Ended December 31, 20 Y9 Advertising expense Transportation rate per bill of lading Number of bills of lading Transportation expense Accounts receivable collection rate Number of sales invoices Accounts receivable collection expense Warehouse rate per sq. ft. Number of square feet Warehouse expense
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